Edison International (EIX): Today's Featured Utilities Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Edison International ( EIX) pushed the Utilities sector lower today making it today's featured Utilities laggard. The sector as a whole was unchanged today. By the end of trading, Edison International fell $0.47 (-1.0%) to $45.53 on heavy volume. Throughout the day, 4,854,035 shares of Edison International exchanged hands as compared to its average daily volume of 1,812,600 shares. The stock ranged in price between $45.51-$46.23 after having opened the day at $46.13 as compared to the previous trading day's close of $46.00. Other companies within the Utilities sector that declined today were: Gas Natural ( EGAS), down 9.6%, Ocean Power Technologies ( OPTT), down 2.2%, Huaneng Power International Inc. ADR repr C ( HNP), down 1.9% and Brookfield Infrastructure Partners ( BIP), down 1.6%.

Edison International, through its subsidiaries, generates and distributes electric power. It also invests in transportation infrastructure and energy assets, including renewable energy in the Netherlands, Australia, Switzerland, and the United Kingdom. Edison International has a market cap of $15.4 billion and is part of the utilities industry. The company has a P/E ratio of 11.2, below the S&P 500 P/E ratio of 17.7. Shares are up 1.8% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Edison International a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates Edison International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, notable return on equity, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Empresa Distribuidora y Comercializadora No ( EDN), up 16.3%, Atlantic Power Corporation ( AT), up 5.2%, China Hydroelectric Corporation ( CHC), up 2.9% and Centrais Eletricas Brasileiras ( EBR.B), up 2.4%.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the utilities sector could consider Utilities Select Sector SPDR ( XLU) while those bearish on the utilities sector could consider ProShares UltraShort Utilities ( SDP).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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